Theta (Time Value) in Options Trading

What is Theta (Time Value) in Options Trading?

Without a doubt, theta is the most popular and used Greek in options trading.  Every trader is lured by the prospect of eating premium from time decay. What is the time value in an option contract? Every options contract has two components: Intrinsic value and time value. The time value component is very high at the start of the options contract, but as time elapses, it starts melting. However, the strange ...

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